Determinants of Equity-based Decisions in Ethiopia: Evidence from PE and VC Operating in Ethiopia
| dc.contributor.advisor | Takele, Yitbarek (PhD) | |
| dc.contributor.author | Demesachew, Kidist | |
| dc.date.accessioned | 2021-07-07T13:35:42Z | |
| dc.date.accessioned | 2023-11-04T09:03:49Z | |
| dc.date.available | 2021-07-07T13:35:42Z | |
| dc.date.available | 2023-11-04T09:03:49Z | |
| dc.date.issued | 2021-03 | |
| dc.description.abstract | The study aimed to explore the determinants of venture capital investment decisions in Ethiopia using a qualitative dominant mixed approach. The study used a thematic and descriptive designs, a narrative and multiple case study methods, and interview as a data collection instrument. Ten venture capital (VCs) and private equity (PE) firms that actively operate in the sector were identified. Of the ten investment firms, only 6 of them were willing to participate in the study. The study results signpost 83.3% of VCs and PE firms invest in growth-stage firms with an average investment of 213,900,000 ETB per venture. It takes VCs and PE firms a minimum of 6 months to cover the investment decision cycle starting with pitching and ending with funding. The high inflation in the economy coupled with the high-risk nature of the ventures has triggered the investment firms to seek a higher IRR. The study also identified seven determinant factors that affect the investment decision of VCs and PE firms in Ethiopia: network capital, entrepreneurs’ character, quality of business plan, entrepreneurs team composition, proposal novelty & game-changing potential, entrepreneurs wolf pack mentality, and business risk. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/27115 | |
| dc.language.iso | en | en_US |
| dc.publisher | A.A.U | en_US |
| dc.subject | Investment decision | en_US |
| dc.subject | Venture capital | en_US |
| dc.title | Determinants of Equity-based Decisions in Ethiopia: Evidence from PE and VC Operating in Ethiopia | en_US |
| dc.type | Thesis | en_US |